Definition: is a legal relationship that occurs in situations when a person is allowed by an individual or a firm to operate in the role of an agent or worker for the said entity. This relationship is different from a formal agency since even though a company has permitted someone to act as an agent, it was issued in an unofficial manner. However, due to the presumption of agency, the organization can’t deny the existence of a legally bounding relationship.
In a Sentence:
The fact of the agency by estoppel was proven in court when it became known that Mr. Eriksen was tasked with recruiting new salesmen for the company.
TOE tried to deny its ties to Patrick Ornwell since they didn’t sign an official agreement, but it was clear that they were bounded through agency by estoppel.
Even though I never was an official employee of Direct Power, I worked for them under agency by estoppel.
Synonyms and related words: presumption of agency, partnership by estoppel, estoppels, mutual agency, agency in fact